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TMI Blog2017 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... be invoked for confirmation of the Service Tax demand - demand set aside - appeal allowed. Penalty u/s 78 for the period April 2004 to June, 2004 - Held that: - the Department has not specifically alleged regarding non-maintenance of statutory records by the appellant. Since the appellant complied with the statutory requirement of maintenance of proper books of accounts and did not pay the Service Tax due to the reason of financial difficulties, non-payment of such tax amount cannot be a defensible ground for imposition of penalty under Section 78 ibid, which specifically provides that in case of fraud, suppression etc. such provisions can only be invoked - penalty set aside by invoking section 80. Interest liability - Held that: - pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- for the period April, 2014 to June, 2014, she submits that due to financial difficulty, Service Tax amount in question was not deposited by the appellant, which was subsequently deposited during the course of adjudication proceedings. She further submits that since the relevant particulars were duly reflected in the statutory books of accounts, malafides cannot be attributed for imposition of penalty under Section 78 of the Finance Act, 1994. Thus, she prays that the benefit of Section 80 ibid should be available to the appellant for non-imposition of penalty of ₹ 3,29,325/- confirmed in the impugned order. She further submits that for delayed payment of Service Tax during the disputed period, the appellant had already deposited t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-maintenance of statutory records by the appellant. Since the appellant complied with the statutory requirement of maintenance of proper books of accounts and did not pay the Service Tax due to the reason of financial difficulties, non-payment of such tax amount cannot be a defensible ground for imposition of penalty under Section 78 ibid, which specifically provides that in case of fraud, suppression etc. such provisions can only be invoked. Therefore, Section 80 ibid in this case, can be invoked for non-imposition of penalty under Section 78 ibid. Accordingly, the impugned order imposing penalty on the appellant under Section 78 is set aside and the appeal is allowed. 7. Since the appellant submits that the amount towards interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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